Caterpillar Cuts 2002 Forecast as Net Falls

Caterpillar Inc. said second-quarter net income fell 26%, far below estimates, and lowered its estimate for full-year profit because of declining spending on bulldozers and backhoes.

Shares of the No. 1 maker of earthmoving equipment fell 4.9% after the company said net income fell to $200 million, or 58 cents a share, from $271 million, or 78 cents, in the year-earlier quarter.

Sales fell 3.6% to $5.29 billion as customers rent instead of buy because they aren’t confident about the economy and financing isn’t readily available, Caterpillar said.

Full-year profit will be about 15% less than 2001, excluding certain costs from last year, or $2.21 a share, the company said.

Caterpillar shares fell $2.19 to $43.00 on the NYSE.